The Problem: No Penalties, Limitless Profits

Federal law seeks to ensure that veterans receive fair, competent, and free claims representation by requiring claims agents be accredited by the U.S. Dept of Veterans Affairs (VA). However, an enforcement loophole has created a predatory industry of unaccredited claim sharks looking to cash in at veterans' expense.

Claim sharks:

• Charge veterans illegal fees for services that should be free
• Push veterans into contracts where they get a cut of the veterans' future VA benefits
• Skirt the law, making veterans liable for mistakes or fraudulently filed paperwork
• Use veterans' private VA login credentials to force vets to pay them a portion of their benefits

Veterans Have Trusted Choices of Accredited Providers

Today, veterans have trained, accredited options available to file initial claims for free. These include:

• County Veteran Service Officers (CVSOs): County employees and benefits experts who help veterans and families file claims and access benefits.
• Veteran Service Organizations (VSOs): Organizations such as the Veterans of Foreign Wars, American Legion, Disabled American Veterans, and others.

The VA's Office of General Counsel oversees accreditation, and applicants must pass a background check and complete continuing education. They are also subject to oversight and discipline.

Veterans earned their benefits. They deserve competent, free, and accredited help – not to be ripped off by companies making millions by preying on their military service.

SB 694 will:

• Prohibits Illegal and Predatory Claims Agents. SB 694 prohibits soliciting, charging, or contracting for assistance with veterans' benefits claims unless the person or entity is federally accredited.
• Prevents Price Gouging of Veterans. SB 694 defines an unreasonable fee as one that exceeds the amount a VA-accredited attorney or claims agent may charge under federal law. This provides a standard for enforcement under California law.
• Protects Veterans' Data & Privacy. SB 694 prohibits unaccredited agents from requesting or requiring veterans to provide login credentials for federal systems. It also makes any contract that violates these provisions void under state law.